For the impact of Brexit on Scottish procedures, see Practice Note: Table showing impact of Brexit on jurisdiction to commence insolvency/restructuring proceedings and obtain recognition in other EU Member States. The Insolvency (Scotland) (Company Voluntary Arrangements and Administration) Rules 2018, SI 2018/1082 and Insolvency (Scotland) (Receivership and Winding up) Rules 2018 (ISRWUP Rules 2018), SSI 2018/347 came into force on 6 April 2019. The content of this Practice Note reflects the application of these rules (the ISRWUP Rules 2018, SSI 2018/347 being those specifically of relevance to this Practice Note). It does not address any transitional provisions as may be applicable, on the assumption that there will be few cases remaining for which the transitional provisions would be relevant. As in England, the appointment of a provisional liquidator is governed by section 135 of the Insolvency Act 1986 (IA 1986) and is sought pending the court's determination of a winding-up petition (for the position in England,

This Practice Note relates to insolvent partnerships and limited partnerships in Scotland, by which it is meant: • ordinary partnerships—with a principle place of business located in Scotland, and • limited partnerships—registered at Companies House in Scotland as a Scottish LP (SLP) (referred to together for the purposes of this Practice Note as Scottish Partnerships). This Practice Note does not cover limited liability partnerships (LLPs) registered in Scotland, which are treated the same way as companies for corporate insolvency purposes. However, insolvencies of Scottish LLPs are governed by the Insolvency (Scotland) Rules 1986, SI 1986/1915. Therefore, the relevant 1986 prescribed forms still apply when dealing with Scottish LLPs, not prescribed content under the applicable 2018 Scottish rules which are used in relation to corporate insolvencies (for more information, see Practice Notes on Scottish compulsory liquidation: Scotland: compulsory liquidation, Scottish creditors' voluntary liquidation: Scotland: process to enter creditors’ voluntary liquidation (CVL)). For a glossary of commonly used Scottish insolvency terms, see Practice Note: Glossary of Scottish insolvency words and expressions. Legal

The Insolvency (Scotland) (Receivership and Winding up) Rules 2018 The Insolvency (Scotland) (Receivership and Winding up) Rules 2018 (ISRWR 2018), SSI 2018/347 were laid before the Scottish Parliament on 14 November 2018 and came into force on 6 April 2019. Consequently, the ISRWR 2018, SSI 2018/347 affected the process for members’ voluntary liquidations (MVLs) in Scotland. Subsequently, the Insolvency (Scotland) (Receivership and Winding Up) (Amendment) Rules 2021 (ISRWAR 2021), SI 2021/1025 were laid before the Scottish Parliament on 9 September 2021 and came into force on 1 October 2021. These latter Regulations are amending statute to the original Rules. This Practice Note therefore concerns the applicable law, procedure and practice relating to Scottish MVLs in force from 6 April 2019 onwards as set out in ISRWR 2018, SSI 2018/347, Pt 3 and ISRWAR 2021, SI 2021/1025, Pt 2. What is an MVL? A MVL is a process by which the members of the company pass a special resolution in order to end its business activities

STOP PRESS: The Scottish Court of Session has issued Practice Note No 4 of 2026, effective from 5 October 2026, setting a clearer framework for Court Reporters appointed to assist the court with insolvency practitioners’ claims for remuneration and outlays in corporate insolvencies. Reporters are invited to regard the Institute of Chartered Accountants of Scotland (ICAS) Work Programme for Court Reporters (2026) as setting out what is expected of them, with particular regard to conflicts of interest, ethical considerations and work carried out by assistants, for which the reporter remains fully responsible. See: LNB News 02/10/2026 10. Introduction and background The Bankruptcy (Scotland) Act 1985 (B(S)A 1985) came into force in 1986 and set out in detail the procedures for dealing with various aspects of sequestration (Scottish bankruptcy). When the Insolvency (Scotland) Rules 1986, SI 1986/1915 were issued relatively quickly thereafter relating to corporate insolvency in Scotland, the rules chose to rely on the recently-introduced provisions of B(S)A 1985 and adapt them for

Entities that may be sequestrated or liquidated A creditor can petition the court for the bankruptcy (also referred to as sequestration) of a debtor under the Bankruptcy (Scotland) Act 2016 (Ba(S)A 2016) (see Practice Note: Scotland: the process for applying for sequestration) or the liquidation of a company under the Insolvency Act 1986 (IA 1986) (see Practice Note: Scotland: compulsory liquidation). For a glossary of commonly used Scottish insolvency terms, see Practice Note: Glossary of Scottish insolvency words and expressions. A creditor may petition the court to sequestrate the estate of a living or deceased individual, a partnership (including a dissolved partnership), a limited partnership (including a dissolved limited partnership), an unincorporated body, a body corporate or a trust (see Ba(S)A 2016, s 6 and Practice Note: Scotland: insolvency of ordinary partnerships and limited partnerships). A creditor may petition the court to liquidate or wind up a company which is registered under the Companies Act 2006 (CA 2006) and has its registered office in Scotland (IA 1986, s 73). Eligibility

This Practice Note is concerned with the commencement of creditors’ voluntary liquidations (CVLs) as set out in Part IV of the Insolvency Act 1986 (IA 1986) and the Insolvency (Scotland) (Receivership and Winding up) Rules 2018 (ISRWUP Rules 2018), SSI 2018/347, r 4.1 (Part 4). This Practice Note does not cover the commencement of members’ voluntary liquidations (MVLs) in Scotland or the applicable law, procedure and practice once a CVL has been commenced and approved by creditors, through to exit and dissolution. Scottish Insolvency Rules 2018 The Insolvency (Scotland) (Company Voluntary Arrangements and Administration) Rules 2018, SI 2018/1082 and ISRWUP Rules 2018, SSI 2018/347 together referred to as the ‘2018 Rules’, came into force on 6 April 2019. The content of this Practice Note has been updated to reflect the application of the 2018 Rules. This Practice Note does not address any transitional provision as may be applicable, on the assumption that there will be few cases remaining for which the transitional provisions

Trust deeds have, for many years, been utilised by debtors as a means of reaching a compromise with their creditors as an alternative to formal sequestration (see Practice Note: Scotland: the process for applying for sequestration). Trust deeds have their roots in common law and, although the law has historically taken a ‘light touch’ approach to them, it has subsequently taken a closer interest in this area. As a result, trust deeds are much more tightly regulated than ever before. The purpose of this Practice Note is to consider the general principles of law of trust deeds and the process and effect of obtaining protected status. For a glossary of commonly used Scottish insolvency terms, see Practice Note: Glossary of Scottish insolvency words and expressions. The Scottish government has announced a commitment to a policy review of both formal debt recovery mechanisms—diligence—and the statutory debt solutions—moratorium protection, bankruptcy, Protected Trust Deeds and the Debt Arrangement Scheme—with the aim of 'further enhancing and improving our system'. The consultation

Introduction In practice, the phrase ‘set off’ in Scotland is generally used as a generic term covering the operation of certain principles which allow a debtor to resist a claim for payment against them (either partially or fully) on the basis of obligations owed to them by the creditor. Three principles that may be invoked to the debtor's advantage are: • compensation • retention • balancing of accounts in bankruptcy Compensation Compensation is the name given to the principle that, where parties owe each other debts that are liquid, the larger debt may be applied to extinguish the smaller, leaving a balance due to the party with the larger debt. The principle is enshrined in the Compensation Act 1592. The Act excludes the setting off of illiquid debts or potential claims and limits its scope only to those debts which are (a) liquid, (b) instantly verifiable by writ or oath, and (c) pled before judgement is pronounced. Consequently, this requires that the parties act in the same capacities

The office of the Accountant in Bankruptcy (AiB) was originally created by section 156 of the Bankruptcy (Scotland) Act 1856. Historically, the functions of the AiB were limited but since 1993, with the enactment of the Bankruptcy (Scotland) Act 1993 (B(S)A 1993), the role has expanded quite considerably. The AiB is now responsible for, not only, supervising the bankruptcy process in Scotland but also carrying out a number of administrative and quasi-judicial functions previously exercised by the court. The AiB also assists Scottish Ministers to formulate policy in a wide range of matters relating to personal and corporate insolvency and diligence. This Practice Note examines the role, functions and responsibilities of the AiB. For a glossary of commonly used Scottish insolvency terms, see Practice Note: Glossary of Scottish insolvency words and expressions. The legal nature of the AiB The AiB is a creature of statute whose office was re-affirmed by section 199 of the Bankruptcy (Scotland) Act 2016 (Ba(S)A 2016). Functions were conferred

Following The City of London Law Society (CLLS) issuing the 8th edition of the Certificate of Title for Property in England and Wales, the Property Standardisation Group (PSG) has published a new edition of the Certificate of Title for properties in Scotland based on the CLLS 8th edition. The PSG website notes that the 7th edition of the Certificate of Title will be maintained for a short period for users who still need to access this previous edition. The PSG have also provided a comparison between the 7th and 8th versions of the Certificate to assist users in identifying the differences.

Generally, all signatures other than those prescribed in the Requirements of Writing (Scotland) Act 1995 (RW(S)A 1995) can be provided electronically—but these electronic signatures are not considered probative for the purposes of the RW(S)A 1995. Statutory declarations are made under the Statutory Declarations Act 1835 (SDA 1835). While SDA 1835 prescribes the standard wording to be used, it does not specifically require that a statutory declaration is made on paper and it makes no provision as to electronic signatures (or signatures generally). Where a statute or statutory instrument requires a statutory declaration to be made, specific details of the form of the declaration may be prescribed. In relation to notices of intention to appoint administrators (NOI), or notices of appointment of administrators (NOA), Schedule B1 to the Insolvency Act 1986 (IA 1986) and the Insolvency (Scotland) (Company Voluntary Arrangements and Administration)

A statutory demand (which must be in Form 5 in the Bankruptcy (Scotland) Regulations 2016, SSI 2016/397, Sch 1) is a formal demand for a debt served by a creditor on its debtor. Failure by the debtor to pay the debt, or satisfy or secure it to the creditor's satisfaction, or to respond to the creditor within three weeks denying the debt will render the debtor ‘apparently insolvent’ (see section 16(1)(i) of the Bankruptcy (Scotland) Act 2016 (Ba(S)A 2016)). Apparent insolvency is a condition that must be established if sequestration is to be awarded. A sum demanded in a demand can, for example, include interest or other charges but there must be clear evidence of the existence of the debt, for example,